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Food Delivery Systems: Management Skills and Entrepreneurship

How risk has been assessed and mitigated

There are several ways that risks can be accounted for in Holistic Food Delivery Systems. One risk that exists is for the service to be perceived as an expensive or novelty meal preparation option. This is consistent with a high value or high priced service that differentiates itself through exclusivity or other high barriers for entry. Currently there is a rising trend towards meal preparation services. They allow restaurant quality meals to be delivered home. They also mitigate the need for consumers to purchase spices and seasonings for their own meal preparation that may be unfamiliar or unnecessary in their overall cooking routine. The best way that this can be mitigated is through the continued use of advertising and lower priced points for items. This will ensure that customers gain an understanding of the service as well as identify with high value, yet moderately priced items. In this way the target audience can be broadened and any apprehensions that middle-class or low budget consumers have will not become a limiting factor to engaging in the business.

Aside from consumer perception, another risk associated with this business is having limited access to consumers who do not find unique value in the model. There are many services that launch food delivery and restaurant catering around the world (Russell, 2015). While each of these offer convenient solutions, it is possible for consumers to get lost amongst the variety of sites, and stick to only a few. Therefore, mobile commerce in this area may be limited to the consumer’s preexisting conceptions or services used by them personally or someone they know. Overcoming this barrier for entry will be essential to the diversified use of consumers as well as the longevity of Holistic Food Delivery Systems.

The risk of demonstrated limited value is one that can be mitigated through proper advertising and product placement that encourages first time use. Discounts, meal recommendations and other ways of featuring existing products within the app will allow for a demonstration of the value that consumers can gain from using the mobile application and corresponding site. Further, the risk of being overlooked can be avoided by differentiating consumer messages to include the health benefits of the product. Since there are many diet based, and health benefits to this service, those characteristics must be promoted to avoid the risks of being categorized with other food delivery options.